treasury and trust operation (banking 2)
TRANSCRIPT
Legal Estate Administration, Guardianship, and Administering Trust
This division would handle matters of legal import, manage and administer
properties under trust, act as executor of last wills and testaments, or administer
estates.
Agency Services
This division handles agency services such as that of safekeeping,
custodianship and escrows.
Asset Management Division
This division manages outstanding and
foreclosed accounts of both institutional and
individual clients.
Fund Management or Investment Division
This division is in charge of coming up
with products and services offered to its
diverse clientele.
To act as trustee for a corporation’s assets under mortgages/ bond issue
In a corporate mortgage, the trustee is charged with
the responsibility of protecting the
mortgagees’ or bondholders’ interest.
To act as transfer agent or registrar of stocks and bonds
The transfer of ownership of stocks and bonds
necessitates an accurate record to protect the
interest of the owners.
To act as guardian of a minor’s interest
When the property of a minor, through a will or through court order, is left in the
hands of bank trustees, it sees to it that such interest are safeguarded and are
properly managed.
To act as executor of last wills and testaments
When the trustor leaves a will, banks
assist in the execution of the last will and testaments.
To act as administrator of estates
Sometimes, the owner of the property or the court
appoint a trustees to take over the management and
administration of his estate.
To act as depository for escrow deposits, valuables, or other securities
In some transactions, one party may require the
other party to deposit in escrow property or cash
to insure the performance of an obligation.
To act as assignee, receiver, or depository
In case of corporation or individual businesses which are
on the brink of bankruptcy or are being mismanaged, it may
be necessary for a third party to take over management to insure
the interest of the creditors.
To act as an advisor
The trust department provides expert advice
to institutions and individuals in
investment decisions.
Individual Trust
Are those which would pertain to trust functions where the welfare and
interest of the individual is safeguarded.
Voluntary or Living Trust
Under this set-up, the owner transfers the title of the
property to a trustee and gives instructions on how to
dispose of the income or how to reinvest the funds.
Insurance Trust
This services is rendered whenever the trust
department of the bank is appointed as trustee under insurance trust
agreements.
Employee Benefit Trust
This involves the creation and design of a plan to
provide economic security and benefits to
employees.
Investment Management Services
Banks manage investment portfolios. It allows clients’
assets to grow in a disciplined manner according to their goals, time frame and
comfort level.
Collateral Trust
In this case, the title of the collaterals placed behind a mortgage is transferred to a trustee for the interest
of the bondholders.
Sinking Fund Trust
The trustee is usually assigned to enforce the provisions for a sinking
fund connected with bond financing.